Can I Pay My Self Assessment Bill Through My PAYE Tax Code?

Key takeaways

• Yes—HMRC can collect your Self Assessment bill through your PAYE tax code if you meet all the conditions.
• The amount you owe must be less than £3,000 (you cannot reduce it with a part payment to qualify).
• You must already pay tax through PAYE (for example as an employee or via a company pension).
• You must submit your return by 31 October (paper) or 30 December (online) for collection through your tax code.

Can I pay my Self Assessment bill through my PAYE tax code?

Yes—HMRC can collect your Self Assessment bill through your PAYE tax code, but only if you meet all the eligibility rules.

In practice, this means the tax is collected from your salary or pension via PAYE deductions rather than you making a separate payment.

HMRC’s conditions (what must be true)

You can pay through your PAYE tax code if all of the following apply:

• You owe less than £3,000 on your Self Assessment bill.
• You already pay tax through PAYE (for example you’re employed or you receive a company pension).
• You submit your return by the right deadline (see below).

Important: You cannot make a part payment to bring what you owe below £3,000 in order to qualify.

The submission deadlines (to use your tax code)

To have your Self Assessment collected through your PAYE tax code, you must submit:

Return type	Deadline to submit (to pay via tax code)
Paper return	31 October
Online return	30 December

How it’s set up (do you need to request it?)

If you meet the conditions, HMRC will automatically collect what you owe through your tax code—unless you asked them not to on your tax return.

When you cannot pay this way (common reasons)

Even if you’re within the £3,000 limit and have PAYE income, you may not be able to use your tax code if:

• you do not have enough PAYE income for HMRC to collect it
• you would pay more than 50% of your PAYE income in tax
• you would end up paying more than twice as much tax as you normally do
• you owed £3,000 or more but made a part payment to reduce the amount you owe to less than £3,000

Also, if you’re self-employed, you cannot pay Class 2 National Insurance through your tax code unless it’s been due since before 6 April 2015.

What it looks like in your payslip

If HMRC collects the bill through your tax code, the amount is usually taken in equal instalments over 12 months, alongside your normal PAYE deductions.

Quick checklist

• My Self Assessment bill is under £3,000
• I already pay tax through PAYE
• I submitted my return by 31 October (paper) or 30 December (online)
• I did not opt out of paying through my tax code on my return

Summary

You can pay your Self Assessment bill through your PAYE tax code if you owe less than £3,000, already pay tax through PAYE, and submit your return by 31 October (paper) or 30 December (online). If you qualify, HMRC will normally collect it automatically through your tax code unless you opted out.